Expansion of business and stringent cost management bolstered the net income of supply chain solutions provider 2Go Group, Inc., as earnings expanded 28% in 2015 to P1.081 billion from P842.555 million in 2014.
Revenue last year likewise grew 14% to P16.418 billion from P14.427 billion in 2014, the group disclosed to the Philippine Stock Exchange.
2Go attributed the growth to the “focused drive to expand all the business units within the group by targeting double-digit increases in revenues and supporting this with stringent cost management.”
Though shipping and non-shipping businesses both grew, 2Go said the latter outpaced the former with a 14% growth in revenue versus the shipping business’ 13% improvement. “With this, 2Go has successfully transformed itself into the largest and most complete supply chain solution provider,” the group noted.
“The expansion is being propelled by the Group’s logistics and value-added services, with 2Go’s shipping operations providing a stable platform and a sustainable competitive advantage,” it added.
Freight revenue increased 17% to P4.963 billion from P4.260 billion mainly due to an 11% hike in volume from more round trips and optimized rounding initiatives.
Passage revenues also rose 9% to P3.524 billion from P3.22 billion on account of a 12% increase in passenger volume last year.
“2Go continues to innovate and improve its service offerings amidst the improving domestic tourism industry that has a positive impact on the volume of sea travellers,” 2Go said.
Revenues from logistics improved 4% to P3.152 billion from P3.039 billion, while the distribution business surged 34% to P3.226 billion from P2.411 billion.
Earnings from the cold chain and ISO tank business likewise grew 35% to P1.17 billion from P869.307 million. International freight forwarding services generated P39.323 million, 5% higher than the P37.622 million previously.
Port services revenue dropped 8% to P140.438 million from P152.028 million.
2Go said the group is “now ready and well positioned to address the needs of a growing Philippine economy that is driven by consumption and inter-island trade.”
It added that it expects to see in 2016 and beyond a repeat of, if not an improvement on, the positive performance last year.
The forecast is based on several factors, including the fact that the service industry is the country’s main growth driver and 2Go’s logistics operations are an integral part of this sector. Another contributing element is the increasing demand for fast-moving consumer goods, which is a service that most 2Go clients are engaged in. Also, all of the company’s business units “made a big headway” in securing accounts from targeted new businesses. Likewise, favorable projections for the Philippine logistics industry and the continued decrease in global fuel prices are seen to help business.
“All these positive factors will continue to contribute to the projected remarkable performance of the group,” 2Go noted.
The group continues to dominate Philippine sea travel with a 92% share of the passage market and a 35% share of the freight market last year.
